Start Your Own Journey into Cryptocurrencies | NWO #Crypto Trading Video Lesson
So, unless you’ve been living under a rock for the last several years, you’ve probably heard of cryptocurrency. In fact, you’ve probably heard all sorts of strange new words like blockchain, NFT, defi smart contract Bitcoin, Ethereum, crypto exchange, crypto wallet, doge coin, and the list goes on. And if you’re like a majority of people on earth, chances are, you’ve still been wondering what the heck most of that stuff means.
What Is Cryptocurrency?
So, for starters, let’s define cryptocurrency, cryptocurrencies are decentralized digital currencies built on a ledger system called a blockchain, which is basically a digital database that uses high levels of cryptography. This blockchain serves several purposes like securely storing and maintaining transaction records, verifying ownership, and even controlling the creation of more coins.
Now argue. One of the most important aspects of cryptocurrencies is that they’re decentralized. That means that they’re not reliant on a central authority like a government or a bank. In fact, that’s precisely one of the main things that made cryptocurrencies so popular, being free from governments and financial institutions with the blockchain individuals can conduct business with each other without the need for brokerages and intermediaries.
Things like loans can be handled with less red tape and prerequisites and. Thanks to the recent widespread adoption cryptocurrencies now have everyday use and application in normal day to day commerce. These currencies are typically stored in a digital wallet, which can exist and be accessed on a phone or even a thumb drive.
They can be used today for all sorts of online and offline transactions. There are even third-party crypto payment service providers today, like BitPay that make it easy for retailers and online stores to accept cryptocurrencies as. Speaking of which we should probably talk about what some of these cryptocurrencies actually are.
The Two Top Cryptocurrencies
Let’s go over just two of the top cryptocurrencies today. These are traditionally seen as sort of the old guard of the crypto space and have arguably the biggest impact on the day-to-day life of the crypto defi and NFT economy. Today, first up is Bitcoin. Bitcoin is considered the world’s original cryptocurrency and was created in 2000 and it runs on a blockchain or a ledger system, which we discussed earlier and is hailed as super secure, safe from scammers, thieves, fraudsters, and so on.
Because that blockchain requires the solving of a cryptographic puzzle. In order for additions to the ledger to be verified. This process is called proof of work. Bitcoin has skyrocketed in value since it’s in. Although $500 seemed high back in 2016. It eventually soared to almost $70,000 per coin in 2021. Today it remains one of the most talked about currencies in the space. Likewise, it’s among the most commonly used and accepted for commercial transactions.
Although it’s recently come under strong scrutiny and criticism by some entities for the alleged negative impact, it has on the environment due to the mining and the proof of work concept. But Bitcoin doesn’t seem to be going anywhere soon. Next. There’s Ethereum. This refers to both the cryptocurrency usually called E and to the blockchain that it’s on Ethereum soon became arguably the primary competitor or alternative to Bitcoin like Bitcoin.
It saw astronomical growth in value, rising to around $3,000 in 2022. One of the reasons for its popularity is all the potential applications of the Ethereum blockchain, which quickly became a favorite of programmers, developers, and entrepreneurs. This blockchain can facilitate things like trustless, smart contracts that automatically execute as promised without the need for human intervention.
What Are Non-Fungible Tokens?
It also facilitates non fungible tokens or NFTs. And today is the most common form of payment for minting buying and the selling of NFTs on the major NFT market. Furthermore, many of the cryptocurrencies that exist today and are being created as we speak are actually created on the Ethereum blockchain.
Thanks to it. Being the preferred blockchain for so many developers, Ethereum isn’t without its own drawbacks and limitations. However. It’s high gas fees, which are fees charged to facilitate the proof of work process for transactions on blockchain have recently come under scrutiny for rocketing to sky high levels.
This has particularly impacted the NFT market lately with gas fees, sometimes rising so high that it makes NFT purchases impossible or impractical. However much of this may change as Ethereum moves into its 2.0 upgrade, which is designed to transition from a proof of work model to a proof of stake. In addition to these two Titans, there are a whole host of other cryptocurrencies in existence today, often called alt coins.
These are other currencies that serve a variety of different purposes and have a variety of interesting and often mind-boggling histories. There are stable coins that are designed to be pegged to Fiat currencies like USD coin there’s game currencies designed for purchase of virtual items in the metaverse games like decentral land there’s even so-called meme.
That were created as jokes and simply grew in value to the popularity on social media. Bottom line, the crypto new world order is a booming mesmerizing and sometimes confusing space. Hopefully we’ve given you enough knowledge today to feel confident about starting your own journey into crypto, or at least to help you decide if it’s the right thing for you.
Keep in mind. The crypto market is a volatile place, so proceed with, diligent caution.